But with rising crop prices posing a direct threat to livestock feeding operations, the road to success may be a bumpy one, and only those operators with diligent input-hedging practices will likely reap the full rewards.
Entering 2011 with Strong Momentum
Most discussions about U.S .agriculture exports tend to center on the country's most widely grown crops - corn, soybeans and wheat. At close to $40 billion in 2010, the total value of cereal and crop exports dominates the agricultural trade balance sheet.
Yet, meat exports have shown much faster growth in recent years in terms of both tonnages shipped and value of the goods exported, and bear watching in 2011 as record total meat shipments look likely should recent sales paces be sustained.
U.S. exporters shipped more than 12.5 billion pounds of meat products (beef, chicken broilers, pork and turkey) to overseas buyers in the first 11 months of 2010, which would mark the fastest annual sales pace since a record 14.3 billion pounds were shipped in 2008, according to data from the U.S. Department of Agriculture's Foreign Agricultural Service division. months of Growing demand in emerging economies coupled with an uptick in broader consumer appetites as the global economy recovers have fueled the recent strength, and look set to foster continuing strong meat sales in excess of 12 billion pounds in 2011.
These totals compare to less than 2.5 billion pounds of meat products exported in 1990, and represent a close-to-400-percent increase over the past two decades. In contrast, U.S. exports of corn, soybeans and wheat over the same period have risen roughly 33 percent.
In dollar terms, the value of U.S. meat exports climbed more than 260 percent since 1990 to close to $11 billion in 2010, compared to a 122 percent same-period rise in the value of cereals and crop exports.
We all Feel Like Chicken Tonight?
Beef exports last year were at their highest level since before the 2003/2004 Mad Cow scare (2 billion pounds), while pork exports were their third highest level ever at more than 3.8 billion pounds. But the undisputed heavyweight meat product in the export arena was broiler chicken, weighing in at more than 6 billion pounds last year and representing nearly half of all meat shipments leaving U.S ports.
Poultry's dominant position among exports did not emerge overnight. Indeed, poultry has been the top U.S. meat export for decades, as well as its most widely produced meat.
But it is only within the past 15-20 years that chicken has routinely accounted for more than half of all meat exports, while at the same time being the most widely eaten meat at the dinner table domestically.
But while poultry is likely to remain the most sought after meat globally in 2011, poultry producers have already shown signs of crimping output of new chicks this year in response to the sharply rising cost of animal feeds which threaten to eat into production margins.
Lower production would suggest higher poultry prices may be on the way, but it is unclear whether any downturns in demand can be expected as a result. Indeed, an increase in poultry consumption may be seen in the months ahead if the price of other more costly meats continues to rise as well.
A Growing Taste for "The Other White Meat"
Hog producers have funded a U.S. campaign in recent years to promote pork as an alternative to chicken, calling it "the other white meat" and featuring photos of pale but appetizing-looking pork chops on billboards and placards across the country.
Judging by U.S. per capita consumption figures, the message has not gotten through, as U.S. pork consumption has flat-lined for decades at around 50 pounds per person per year, and if any
